Reviewed interim consolidated financial statements for 1H2025

Deloitte.

HO CHI PIINH CITY DEVELOPF1ENT JOINT STOCK COPIHERCIAL BANX

(lncorporsted in the Socialist Republic of Vietnam)

REVIEWED INTERIM CONSOLIDATED FINANCIAL STATENENTS

For the 6-month period ended 30 June 2025

In accordance with Vietnamese Accounting Standards, accounting reg/me applicable to crsd/t /nstifur/on.s in Vietnam and /ega/ reputations relating to interim seporata financial repairing

HO CHI MINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK

25Bis Nguyen Thi Minh Khai, Sai Gon Ward Ho Chi Minh City, Vietnam

TABLE OF CONTENTS

HO CHI MINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK

25Bis Nguyen Thi Minh Khai, Sai Gon Ward

Ho Chi Minh City, Vietnam

The Board of Management of Ho Chi Minh City Development Joint Stock Commercial Bank (“the Bank") presents this report together with the Bank*s interim consolidated financial statements for the 6-month period ended 30 June 2025.

The members of the Board of Directors, Board of Supervisors, Board of Management and the Chief Accountant of the Bank during the period and to the date of this report are as follows:

Board of Directors

Mr. Kim Byoungho

Ms. Nguyen Thi Phuong Thao Mr. Luu Duc Khanh

Mr. Nguyen Thanh Do Mr. Pham Quoc Thanh Mr. Nguyen Huu Dang Mr. Le Manh Dung

Board of Supervisors

M . Dao Duy Tuong Ms. Duong Thi Thu Ms. Bui Thi Kieu Oanh Mr. Nguyen Le Hieu

Chairman cum Independent Member Standing Vice Chairwoman

Vice Chairman Vice Chairman

Vice Chairman (appointed on 13 May 2025) Vice Chairman (resigned on 08 January 2025) Independent Member

Chief Supervisor Member Member Member

Board of Management and Chief Accountant

Mr. Nguyen Huu Dang Mr. Pham Quoc Thanh Mr. Nguyen Minh Duc Mr. Nguyen Van Hao Mr. Tran Thai Hoa

Mr. Tran Hoai Nam Mr. Dam The Thai Mr. Le Thanh Tung

Mr. Nguyen Dang Thanh Mr. Nguyen Canh Vinh Mr. Tran Xuan Huy

Mr. Pham Van Dau

Ms. Ho Dang Hoang Quyen

General Director (appointed on 13 May 2025) Acting General Oirector (resigned on 13 May 2025) Deputy General Director

Deputy General Director Oeputy General Director

Deputy General Director (reappointed on 27 February 2025) Deputy General Director (appointed on 01 June 2025) Deputy General Director (resigned on 01 June 2025)

Deputy General Director (resigned on 01 June 2025) Deputy General Director (resigned on 06 June 202S) Deputy General Director (resigned on 1S January 2025) Chief Financial Officer

Chief Accountant

Mr. Tran Hoai Nam Deputy General Director

(According to Decision No. 3967/2025/QO-TGD dated 23 July Z025 of the Legal Representative)

1

25Bis Nguyen Thi Minh Khai, Sai Gon Ward

Ha Chi Minh City, Vietnam

The Board of Management of the Bank is responsible for preparing the interim consolidated financial statements, which give a true and fair view of the interim consolidated financial position of the Bank as at 30 June 2025, and of its interim consolidated financial performance and its interim consolidated cash flows for the 6-month period then ended in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and leBa!‹€'eulations reating to interim consolidated financial reporting, in preparing these interim consolidated financial statements, the Board of Management is required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgments and estimates that are reasonable and prudent;

• State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the interim consolidated financial statements;

• Prepare the interim consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank will continue in business; and

• Design and implement an effective internal control system for the purpose of properly preparing and presenting the interim consolidated financial statements so as to minimize errors and frauds.

The Board of Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the interim consolidated financial position of the Bank, and that the interim consolidated financial statements comply with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to interim consolidated financial reporting. The Board of Management is also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.

The Board of Management confirms that the Bank has complied with the above requirements in preparing these interim consolidated financial statements.

For and on behalf of the Board of Management,

I

'i•

Deputy General Director

Ho Chi Minh City, 28 August 2025

s6: 0295 NDIA-HN-BC

JS* Floor, Vinaconex Tower,

34 Lang Ha Street, Lang Ha Ward, Dong Da D'lstrict, Hanoi, Vietnam Tel : +B4 24 7105 C000

Fax: +84 24 6288 5678

https://www.deIoitte.com/vn

The Shareholders

The Board of Dlrectors and the Board of Management

Ha Chi Mlnh Oty Development Joint Stock Commercial Bank

We have reviewed the accompanying interim consolidated financial statements of Ho Chi Minh City Development Joint Stock Commercial Bank ("the Bank“), prepared on 28 August 2O2s as set out from paB« 05 to page 61, which comprise the interim consolidated statement of financial position as at Z0 June 2025, the interim consolidated income statement and the interim consolidated cash flow statement for the 6-month period then ended, and a summary of significant accounting policies and other explariatow information.

The Bank‘s Board of Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to interim consolidated financial reporting and for such internal control as the Board of Management determines is necessary to enable the preparation of interim consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Audfiorr’ Responsfblffty

Our responsibility is to express a conclusion on these accompanying interim consolidated financial statements based on our review. We conducted our review in accordance with Vietnamese Standard on Review Engagements (VSRE) 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

A review of interim consolidated financial statements consists of making inquiries, primarily of persons responsibie for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Vietnamese Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Umited ("DTTL“), iu global network of member firms, and their related entities (collectively, the

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Deloitte.

REPORT ON REVIEW DF INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements do not present fairly, in all material respects, the interim consolidated financial position of the Bank as at 30 June 2025, its interim consolidated financial performance and its interim consolidated cash flows for the 6-month period then ended in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to interim consolidated financial reporting.

Dther matters

The consolidated financial statements of the Bank for the year ended 31 December 2024 were audited by another auditor who expressed an unmodified opinion on those statements on 31 March 2025.

The interim consolidated financial statements of the Bank for the 6-month period ended 30 June 2024 were reviewed by another auditor who expressed an unmodified conclusion on those statements on 12 August 2024.

TNHH KI M YOU

* DBLO *

Tran Tht

Audit Partne *

Audit Practising Registration Certificate

No.0031-2023-001-1

DELOITTE VIETNAM AUDIT COMPANY MMITED

28 August 2025 Hanoi, S.R. Vietnam

HO CHI MtNN CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK I-ORM B02a/TCTD-HN

25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As ot 30 tune 2025

The accampanying notes are an in(egral part of these interim consolidated financial statements

HO CHI MINH CITY D£VELOPM£NT JOINT STOCK COMMERCIA1 BANK FORM B02a/TCTD-HhI

25Bis Nguyen Thi Minh Kha!, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)

As at 30 June 2025

1. j/.

   deposits and borrowings from the Government and the SBV

   	Deposits and borrowings from other credit institutions	yg	99,269,338	99,460,579
   	DepositS from other credit institutions	18.1	75,267,930	74,877,046
   2.	Borrowings from other credit institutions	t8.2	24,001,408	24,583,533
   III.	Deposits from customers	19	478,700,229	437,50S,165

   Derivative financial instruments and other financial liabilities

   9,952

   15,434

   18,449

   	Grants, trusted funds and borrowings where the Bank bears risks	20	2,787,202		2,788,443
   VI.	Valuable papers issued	21	gz,cas,176		81,349,744
   VII.	Other liabilities	22	55,0L7,O27		19,571,383
   1.	Accrued fee and interest expenses	22.1	11,475,643		8,013,166
   2.	other payables and liabilities	2Z.2	43,541,384		11,558,217
   	TOTAL LIABILITIES		719,469,924		640,709,197
   	Owners' equity	24	64,626,363		56,657,261
   1.	Contributed capital		35,224,020		35,224,020
   a.	Charter cop/ro/		35,101,423		35,101,423
   b.	Investment and construction capital		89		89
   C.	Shares premium		535,956		535,956
   d. 2.	Treasury shores Reserves		(42J,448) 8,833, 680		{413,448} 6,313,202
   3.	Foreign exchange differences		(26,977)
   4.	Retained earnings		18,145,365		12,953,88 L
   5.	Non-controlling interest		2,450,275		2,166,158
   	TOTAL LIABILITIES AND OWNERS' EQUITY		784,096,287		697,366,458

   HD CHIMtNIt CITY D€VE£0PMENT JOINT STOCK ODMMERCIAL BANK FORM B02a/TAHN

   2SBis Nguyen Thi Mlnh Xhai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh Oty, Vietnam dated 31 December 2014 of the SBV

   INTERIM CDN5OtJDATED STATE84ENT OF FINANOAL PoSITlDN (Contlnued)

   Nam

   	ITEMS	I¥otes	Cledng balance	Opening balance
   i	Credit guarantees	39	9,045	808.743
   2.	Foreign exchange transactions commitments r-oreigncurrency purchase commitments	39	300,582,741	199,138,079
   	Foreign currency sale comm/tments		4,39S,B82	8,977,349
   	Cross currencyswap contracts		291,901,B80	183,343,8B3
   3.	Letters of credit(L/C) commitments	39	49,598,763	46,476,948
   4.	Othar guarantees	39	27,266,669	24,924,BO3
   5.	other commitment	39	12,937,948	12,364,361
   6.	Uncollected interest income and fees		3,677,692	3,336,440
   7.	Bad debu written off	41	26,236,856	20,134,777
   8.	Other assets and documents	42	48,647,838	47,589,161
   	Total		468,957,552	M4,773,311

   Ha Dnng Hoang Quyen

   28 Augtzst 2025

   Unit: VND Million

   HO CHI MINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK FORM B03a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN

   Ho thi Mink City, Vietnam dated 31 December 20l4 ot the SBV

   INTERIM CONSOLIDATED INCOME STATEMENT

   For the 6-month period ended 30 June 2025

   1.	Interest and similar income	25	32,981, 42S	28,624,094
   2.	Interest and similar expenses	26	(15,754, 167)	(13,743,866)
   t.	Net interest income		17,227,258	14,880,228
   3.	Income from services		3,05 1,259	1,388,483
   4.	Expenses on services		(986,409)	(807,152)
   II.	Net gain from services	37	2,064,850	581,331
   Ill.	Net gain from trading foreign currencies	28	612,218	485,293
   IV.	Net gain/(loss) from trading securities	29	630,635	(78,943)
   V.	Net gain from investment securities	30	2,782	15,434
   5.	Other income		348,533	248,077
   6.	Other expenses		(142,054)	(86,339)
   vl.	Net gain from other activities	31	206,479	161,738
   VII.	Income from capital contribution, equity	3Z	96,218

   NO.

   ITEMS

   Notes Current period

   Unit: VND Million

   Prior petiod

   investments Operating expenses		33	{S,306,55 2)	{S,484,Zi19)
   IX. Net profit from operating activities before credit 15,533,888 10,560,662
   	provision expenses
   X.	Provision expenses for credit losses		(5,465,867)	(2,396,082)
   xl.	Profit before tax		10,068,O21	8,164,580
   7.	Current corporate income tax expense	34	(1,961,6g3)	(1,b87,603)
   8	Deferred corporate income tax expense		(72,607)	(11,953)
   	Corporate income tax expense		(2,034,290)	(1,699,556)
   XIII.	Profit after tax		8,033,731	6,465,024
   	Non-controlling interests		2g4,i17	240,361
   	Net profit attributable to the owners of the Bank		7,749,614	6,224,663

   xvM.

   Earnings per share

   Diluted earnings per share

   1,791

   1,580

   Ho Dang Hoang Quyen Chief Accountant “

   Pham Van Dau

   Chief Financial Officer

   Tran Hoai Nam

   Deputy General Director

   28 August 2025

   HO CHi MINH CFFY DEVELOPMENT JOINT STOCK COMMERCIAL BANX FORM B04a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ha Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   INTERIM CONSOLIDATED CASH FLOW STATEMENT

   For the 6-month period ended 30 June 2025

   (under direct methodl

   Unit: VND Million

   NO.

   ITEMS

   Notes Current period

   Prior period

   CASH FLOWS FROM OPERATING ACTIVITIES

   01. Interest and similar income received 02- Interest and similar expenses paid

   03. Income received from services

   Net cash received from dealing in foreign currencies and trading securities

   05. Other income

   31,417,309

   12,363452)

   1g41204

   1,266,274

   48,967

   27,792,677

   16,541,782)

   762,260

   902,425

   37,314

   06.

   y

   Cash recovered from bad debts written off or compensated by provision for credit losses Payments to employees and for operating management

   197,766

   (5,795,468)

   165,757

   (S,053,370)

   08. Corporate income tax paid for the period

   net cash from operating profit before movements in

   assets and working capital

   Movements In opemtlng assets

   23 (1,872,172)

   14,840,428

   (2,629,502)

   5,435,779

   09- (Increases)/decreases in placements with and loans	(372,013)	928,621
   10. (Increases)/Decreases in trading securities	(16,326,016)	9,996,806
   11. Increases in derivatives and other financial assets	(40,229)	(271,o13)
   12. Increases in ioans to customers	(66,064,001)	(42,782,442)
   13. Decreases in provisions for credit losses	(5,247,584)	(1,683,521)
   14. Increases in other operating assets	(1,852,809)	(3,907,349)
   Movements in operating liabilities

   to other credit institutions

   IS.

   16.

   17.

   18.

   1g.

   21.

   22.

   Decreases in borrowings from the Government and the SBV

   (Decreases)/Increases in deposits and borrowings from other Credit institutions

   Increases in deposits from customers Increases/(Decreases} in issued valuable papers (Decreases)/Increases in grants, trusted funds and borrowings where the Bank bears risks

   Decreases in derivatives and other financial liabilities

   Increases in other operating liabilities Payments from reserves of credit institutions

   (5,482)

   (19L241} 41,195,064

   2,336,432

   (1,241)

   (18,449}

   32,451,039

   (17,652)

   (5,612)

   6,600,436

   1S,795,455

   (6,34S,492)

   45,349

   2,956,939

   (1,493)

   I. Net cash flows from operating activities 686,246

   The accompanying notes are an integral part of these interim consolidatedfinancial statements

   HO CHI MINH CFFY DEVELOPMENT JOINT STOCK COMMERCIAL BANK FORM B04a/TCTD-HN

   2SBis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   INTERIM CONSOMDATED CASH FLOW STATEMENT (Continued)

   For t/te 6-month period ended 30/une 2025 (Under direct method)

   NO.

   ITEMS

   Notes Current period

   CASH FLOWS FROM INVESTING ACTIVITIES

   01. Acquisition of fixed assets	(111,421)	(207,524)
   02. Proceeds from sales, disposal of fixed assets	205,724	1,019
   03. Payments for equity investments in other entities		(657,639)
   04. Proceeds from investment In other entitles	11,880	14,375

   05. Dividends and profit received from long-term investments in other entities

   4,896

   Net cash flows from investing activhies

   III. Net Increase/(decrease) in cash and cash equivalents for the period

   1. Cash and cash equivalents at the beginning of the period

   2. Effect of foreign exchange differences

   3. Cash and cash equlvaients at the end of the period 36

      111,079

      797,325

      137,Z61,S2S

      (26,977)

      138,031,874

      (14,087,306)

      132,411,767

      118,t96,318

      No Dang Hoang Quyen

      Chief Accounta t

      Pkam Van Oau

      Chief Flnanclal Officer

      ” ran Hoai Nam

      Daputy General Directer

      28 August 2025

      The accompanying notes are an integral part of these interim consolidated financial statements

      HO CHP MtNH CITY DEV£LOPMEMT JO)AT STOCX COMMERCIAL BANX FORM b05a/TCTD-HN

      25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ha Chi Minh City, Vietnam dated 31 December 2014 of the SBV

      NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

      Tltese notes are an integrolpartof and should be read in conjunction with the accompanying interim cansolidatedfinanclalstatements

      GENERAL tNFORMAtQN

      Ho Chi Minh City Development Joint Stock Commercial Bank (herein referred to as "the Bank" or "HDBank") is a joint stock commercial bank incorporated and registered in the Socialist Republic of Vietnam.

      Establishment and operation

      On 06 June 1992, the Bank was granted Establishment and Operation License No. 00019/NH-GP issued by the State Bank of Vietnam ("SBV") for a period of 99 years from the date of issuance. On 12 February 2020, the SBV issued Establishment and Operation License No. 26/GP-NHNN replacing Establishment and Operation License No. 00019/NH-GP and the amendments to the Establishment and Operation License of the Bank from 2010 to 2019. The latest decision related to the amendment and supplement to the Establishment and Operation License was issued by the SBV on 16 July 2025.

      The Bank's first Business Registration Certificate No. 0300608092 dated 11 AuguSt 1992 was issued by the Department of Planning and Investment of Ho Chi Minh City (currently known as Department Of Finance of Ho Chi Minh City) and the Bank commenced operations from the date of license issuance. The latest (33") amended Enterprise Registration Certificate was issued by the Department of Planning and Investment of Ha Chi Minh City on 0S September 2023.

      Principal activities

      The principal activities of the Bank are to mobilise and receive short, medium and long-term funds from organisations and individual; to grant short, medium and long-term loans to organtsations and individuals based on the nature and capabilities of the Bank*s capital resources; to trade foreign currencies; to provide international trade finance services; to discount commercial notes, bonds and other valuable papers; to provide settlement services and to provide other banking services as permitted by the SBV.

      Charter capital

      As at 30 June 2025, the Bank's charter capital is VND 35,101,423 million. Operating network

      The Head Office of the Bank is located at 25Bis Nguyen Tht Minh Khai, Sai Gon Ward, Ha Chi Minh City. As at 30 June 2025, the Bank has one (01) Head Office; one (01) northern representative offices in Hanoi City; one (01) representative office in Myanmar; eighty seven (87) branches and two hundred and eighty-eight (288) transaction offices in provinces and cities across the country.

      HO CHI MINH COPY DEVELOPMENT JOINT STOCK COMMERCIAL BANK FORM B05a/TCTD-HN

      25Bis fJguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

      NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

      Subsidiaries

      As at 30 June 2025, the Bank has two (02) subsidiary companies as follows:

      Be	Name	Established in accordance with	Nature of business	Proportion of ownership
      1	HD SAISON Finance Co-, Ltd t"HD SAISON“) (/)	Establishment and Operation License No. 05/GP-NHNN issued by the SBV on 08 May 2007 and most recent amendment License No. 67/GP-NHNN issued by the SBV dated 31 October 2017	Banking and Finance	50%
      	Vikki Digital Bank Limited ("Vikki Bank“) (ii)	Establishment and Operation License No. 0009/NH-GP issued by the SBV on 27 March 1992 and most recent amendment Decision hlo. 237/QO-NHNhI dated 14 February 2025	Banking and Finance	100%

      1. According to the agreement among the capital contributors to HD SAISON, the Bank has the right to control the company.

      2. On 17 January 2025, the SBv announced Decision No. 116/QO-NHNN by the Governor of the SBV regarding the compulsory transfer of Dong A Joint Stock Commercial Bank to the Bank. After the compulsory transfer, Dong A Joint Stock Commercial Bank operates under the legal form of a one-member limited liability company, owned by the Bank, with the name Dong A Bank Limited, which is an independent legal entity, and was renamed to Vikki D 8ital Bank Limited according to Decision No. 42/QO-TTG5NH2 issued by the Bank Inspection and Supervision Agency of the SBV on 14 February 2025. Under the regulations of Law on Credit Institutions ñlo. 32/2024/QH15 issued by the National Assembly on 18 January 2024, the Bank is not required to consolidate the financial statements of Vikki Digital Bank Limited, which is excluded from the consolidated capital adequacy ratio calculation. Accordingly, the consolidated financial statements of the Bank for the 6-month period ended 30 June 2025 include the Bank and its subsidiaries but exclude Vikki Digital Bank Limited.

   No	Name	Established in accordance with	Nature of business	Proportlon of ownership
   1	HD Securities Corporation (“HDS")	Establishment and Operation License 7/uBcK-GPHOKD issued by State Securities Commission of Vietnam on 28 December 2006 and most recent amendment License 50/GPOC-UBCK	Securities	29,99a»
   		dated 26 June 2024

   Employees

   The total number of employees of the Bank and its subsidiaries as at 30 June 2025 was 18,380 (as at 31 December 2024: 18,533).

   IZ

   HO CHI MINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANft FORM B05a/TCTD-HN

   35Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December Z014 of the SBV

   NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (continued)Disclosure of information comparabilhy in the interim consolidated financial statements

   The comparative figures of the interim consolidated statement of financial position and the corresponding notes are the figures of the Bank's audited consolidated financial statements for the year ended 31 December 2024.

   The comparative figures of the interim consolidated income statement, interim consolidated cash flow statement and the corresponding notes are the figures of the Bank*s reviewed interim consolidated financial statements for the 6-month period ended 30 June 3024.

2. ACCOUNTING CONVENTION AND ACCDUNTING PERIOD

Accounting convention

The accompanying interim consolidated financial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to interim consolidated financial reporting. However, due to the Bank's large scale of operation, for the purpose of preparing these interim consolidated financial statements, the figures are rounded to and presented in millions of Vietnamese Dong (VND Million). This presentation does not materially impact the interim Consolidated financial statements in terms of the interim consolidated financial position, the interim consolidated financial performance and interim consolidated cash flows of the Bank. With regard to the number of shares, the Bank presented the figures to the units presented in Note 24.B.

The accompanying interim consolidated financial statements are not intended to present the interim consolidated financial position, interim consolidated financial performance and interim consolidated cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.

The Bank's financial year begins on 01 January and ends on 31 December. The accompanying interim consolidated financial statements were prepared for the 6-month period ended 30 June 2025.

APPLICATION OF NEW GUIDANCES AND NEW GUIDANCES IN ISSUE BUT NOT YET EFFECTIVE

Application of new guidances

Low on Credit fnstfrutfons Ila. 32/2024/QHJ5

1

On 18 January 2024, the National Assembly Issued Law on Credit Institutions No. 32/2024/QH15 (“Law on Credit Institutions 2024"), which provides regulations on the establishment, organization, operation, early intervention, special control, restructuring, dissolution, and bankruptcy of credit institutions; as well as the handling of non-performing Ioans (NPLs) and collateral assets of such Ioans. The Law on Credit Institutions 2024 takes effect from 01 July 2024, replacing the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010, and the Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions No. 17/2017/QH14 dated 20 November 2017, except for certain provisions that will take effect from 01 January 2025.

On 29 November 2024, the National Assembly issued Law No. 56/2024/QH15 (”Law No. 56^) amending and supplementing certain articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Handling of Administrative Violations. Law No. 56 shal take effect from 1 January 202S, except for certain provisions which take effect from 1 April 202S and 1 January 2o26.

25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (continued)

Ofi'Icial Dispatch No. 48d8/ñfHñf/V,/tCXT (“Offtclol Dispatch 4848”j Issued on 11 June 2036 provides accounting guidance far letters of credit ond other related business activities.

The State Bank of Vietnam issued Official Dispatch No. 4848/NHNN/TCXT dated 11 June 202S, providing guidance on the accounting treatment of letters of credit and other related business activities. Accordingly, the Bank has applied Dispatch 4848 in the preparation and presentation of the consolidated interim financial statements for the accounting period ended on 30 June 202S.

New guidances in issue but not yet effective

On 27 June 2025, the National Assembly of Vietnam issued Law No. 96/202S/QH15 ("Law 96") amending and supplementing a number of articles of Law on Credit Institutions No.32/2024/QH1S dated 18 January 2024. Key changes of Law 96 that have impacts on the Bank's consolidated financial statements in the future including the regulation on special Ioans from the State Bank of Vietnam and terrain conditions when settling the bad debts and collateral of bad debts. Law 96 takes effect from 1S October 2025.

On 12 June 2025, the Government issued Decree No. 135/2025/NO-CP (“Decree 135”) replacing Decree No. 93/2017/NO-CP dated 07 August 2017 regulating the financial regime applicable to credit institutions, foreign bank branches, and the financial supervision and evaluation of the efficiency of state capital investment in wholly state-owned Credit institutions and state-invested credit institutions. Decree 135 takes effect from 01 August 2025.

Key changes of Decree 135 that have impacts on the Bank's Interim consolidated financial statements in the future include the following:

Type of revenues and expenses and revenue recognition and expense recognition principles for commercial banks; and

Stipulation on management and use of Capital and assets; and

Stipulation on an appropriation of 10% of the remaining profit after tax after deducting the prescribed amounts to the supplementary charter capital reserve but not exceeding the charter capital of the credit institution.

On 12 August 20Z5, the State Bank of Vietnam issued Circular No. 33/2025/TT-NHNN (”circular 23”) amending and supplementing certain articles of Circular No. 30/2019/TT-hlHNN dated Z7 December 2019, which stipulates the implementation of mandatory reserves by credit institutions and foreign bank branches. The main change introduced by Circular 23 that will affect the Bank's consolidated financial statements in the future is a 50% reduction in the mandatory reserve ratio for credit institutions that are transferee entities in a compulsory transfer of specially controlled commercial banks, in accordance with the Law on Credit Institutions 2024 and the compulsory transfer plan approved by the competent authority. Circular 23 comes into effect from 1 October 2025.

2SBis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

1. SUMMARY DF SIGNIFICANT ACCOUNTING POLICIES
   1. Estimates

      The preparation of the interim consolidated financial statements in conformity with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to interim consolidated financial reporting requires the Board of Management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Such estimates and assumptions are continually evaluated. They are based on historical experiences and other factors, including expectations of future events that may have a financial impact on the Bank and that are assessed by the Board of Management to be reasonable under the circumstances.

   2. Basis of consolidation

      The interim consolidated financial statements incorporate the interim consolidated financial statements of the Bank and the interim financial statements of the subsidiaries controlled by the Bank (its subsidiaries) for the 6-month period ended 30 June 2025. As disclosed in Note 01, the Bank is not required to consolidate the interim financial statements of Vikki Digital Bank Limited under the regulations of Law on Credit Institutions hlo. 32/2024/QH15 issued by the National Assembly on 18 January 2024 when preparing the Bank's interim consolidated financial statements for the 6-month period ended 30 June 2025.

      The operating results of subsidiaries acquired or disposed of during the period are included in the interim consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the interim consolidated financial statements of subsidiaries to bring the accounting policies used in line with those used by the Bank. All internal transactions and balances between the Bank and its subsidiaries are eliminated in full on consolidation.

      The assets, liabilities and contingent liabilities of the subsidiaries are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired is recorded in the interim consolidated income statement of the period of acquisition.

   3. Foreign currencies

      According to the Bank's accounting system, all transactions are recorded in original currencies. Transactions denominated in foreign currencies are translated using the exchange rate applied on the transaction date.

      At the end of each month, monetary assets and liabilities denominated in foreign currencies are translated into VND using the exchange rate applied on the last day of the month (the exchange rate applied according to Circular 22/2017/TT-NHNN issued on 29 December 2o17).

      Foreign exchange differences at the end of the month are recognised in the foreign exchange differences item in the consolidated statement of financial position at month end and transferred to the consolidated income statement at year end.

   4. Cash and casls equivalents

      Cash and cash equivalents comprise cash, gold, current accounts at the SBV, current accounts, time deposits with term of three months or less mam the deposit date at other credit institutions and securities investment with the original maturity of three months or less from the transaction date.

      HO Cttt MINH CITY DEVELOPfdENT XhNT STOCK COMMERCIAL BANX FDRM 805a/TCTD-HN

      25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 Oecember 2014 of the SBv

      NOTES TO THE INTERIM CONSOLIDATEO FINANCIAL STATEMENTS(Continued)
   5. Placements with and Ioans to other credlt institutions

Placements with and Ioans to other credit institutions are disclosed and presented at their outstanding principal amounts at the end of the reporting period.

Before 1 July 2024, debt classification and credit risk provisioning for placements with and loans to other credit institutions were made in accordance with Circular No. 11/2021/TT-NHNN (“circular 11”) issued by SBV on 30 July 2021 regulating asset classification, provisioning levels, risk provisioning methods and the use of provisions to handle risks in the operations of credit institutions and foreign bank branches,

being SiFfildf to ttOSe pOti'Ci 'S OF lOBfS tO CuStOMBF5.

From 1 July 2024, the credit risk classification for placements with and Ioans to other credit institutions and the corresponding provisioning shall comply with the provisions of the Circular hlo. 31/2024/TT-NHNN (“Circular 31”) dated 30 June 2024 issued by the SBV regardings classification of assets in the operation of commercial banks and Decree No. 86/2024/NO-CP (“Decree 86”) dated 11 July 2024 issued by Prime Minister on amounts and methods of establishing risk provisions and use of provisions for management of risks arising from operations of credit institutions. Accordingly, the Bank makes specific provisions for deposits (except for current deposits at other domestic credit institutions and foreign bank branches, and placements with Vietnam Bank for Social Policies following the regulations of the SBV on maintaining the balance of deposits at Vietnam Bank for Social Policies of state credit institutions) at other credit institutions and foreign bank branches as prescribed by law, and deposits (except for current deposits) at overseas credit institutions in a similar way to those for Ioans to customers.

For foreign currency forward and swap contracts, the difference between equivalent VND amounts of foreign currency purchase/sale commitmens using the forward exchange rate and the spot exchange rate as at effective date of the contract is recognized immediately at the effective date of the contract under “Interest and fee receivables” item or “interest and fee payables” item in the interim consolidated statement of financial position. The difference is subsequently allocated to “Net gain/(loss) from foreign currency trading” item on a straight-line basis over the term of the contract.

Commitments of foreign currency forward contracts are revaluated monthly and exchange differences arising from the revaluation of foreign currency-denominated balances of these contracts are recognized in the consolidated income statement at the end of the month and transferred to the consolidated income statement at year end.

Commitments of one-currency-interest-rate swap contracts are monitored off the interim consolidated statement of financial position.

For two-currency-interest-rate swap contracts with nominal principal swap, at the effective date of them contract, commitments monitored off the consolidated statement of financial position and exchanged principals are recognized in the interim consolidated statement of financial position. Income an expenses arising from interest rate effects are recorded on the accrual basis.

For two-currency-interest-rate swap contracts without nominal principal swap, at the effective date of the contract, commitments are monitored off the interim consolidated statement of financial position. Income and expenses arising from interest rate effects are recorded on the accrual basis.

1. Leans to customers

   Loans to customers are disclosed and presented at their principal amounts outstanding at the end of the reporting period.

   HO CNt M1NH CITY DEV£LOPMEMT JDtAT STDCX COMMERCIAL BANK FORM B05a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2. Provision for credit losses

   C/osrf,/tcot/on o/loans

   Before 1 July 2024, Ioans classification and provisions for credit losses of Ioans to Customers were made in accordance with Circular 11.

   From 1 July 2024, for Ioans to customers, Ioans classification was made in accordance with Circular 31; and provisioning for credit risks was made in accordance with Decree 86.

   Under Circular 31 and Decree 86, the Bank is required to apply loan classification and credit risk provisioning to the Assets (hereinafter referred to as “debts”) including:

   Loans;

   Finance leasing;

   - Discounts, rediscounts of negotiable instruments and other valuable papers; Factoring;

   Credit facilities in the form of credit card issuance;

   Payments on behalf under off-balance-sheet commitments include payments made on behalf of customers under transactions of guarantee and letters of credit (L/C) (except for payments made on behalf of customers under transactions of Usance Payable at Sight (UPAS) L/C that allow the beneficiary to be paid immediately or before the L/C due date, and those under transactions of L/C reimbursement as agreed with customers using the reimbursing bank‘s funds trom the date the reimbursing bank pays the beneficiary; transactions of L/C payment negotiation) and other payments made on behalf of customers under off-balance sheet commitments;

   Amounts for purchase and entrustment of purchase of corporate bonds (including bonds issued by other credit institutions) which have not yet been listed on stock exchanges nor registered for trading on the UPCoM trading system (hereinafter referred to as unlisted bonds), excluding the purchase pf unlisted bonds with trusted funds to which the trustee bears the risk;

   Credit granting entrustment;

   • Deposits (except for current accounts at other domestic credit institutions and foreign bank branches, and deposits at Vietnam Bank for Social Policies following regulations of the SBV on maintaining the balance of deposits at Vietnam Bank for Social Policies of state credit institutions) at other credit institutions and foreign bank branches as prescribed by law, and deposits (except for current deposits) at overseas credit institutions;

   • Debt sale and purchase according to the State Bank's regulations except for bad debt buying and selling transactions conducted between credit institutions or foreign bank branches and Vietnam Asset Management Company (VAMC):

   Repos of Government bonds in the stock market following the law on issuance, registration, depository, listing and trading of Government debt securities in the stock market;

   Purchase of certificates of deposit issued by other credit institutions and foreign bank branches;

   n’

   Transactions of Usance Payable at Sight (UPAS) L/Cthat allow the beneficiary to be paid immediately or before the L/C due date, and those under transactions of L/C reimbursement as agreed with customers using the reimbursing bank's funds from the date the reimbursing bank pays the beneficiary; transactions of L/C payment negotiation; and

   Outright purchase without recourse of sets of documents presented under L/Cs, except where a commercial bank or foreign bank branch purchases outright without recourse of documents presented under an L/C which it has issued.

   Accordingly, customers* debt group is determined to be the highest of risk group as classified under Article 10 and Article 11 of Circular 31 and customers' highest debt group at credit institutions provided by the Credit Information Center (“CIC”) of the SBV at the time of loan classification.

   HO CHI MINH CITY DEVELOPMENT JOINT SYOCK COMMERCIAL BANK FORM B05a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TO THE INTERIM CONSOUDATED FINANCIAL STATEMENTS(Continued)

   The Bank maintains the same debt group for a number of loans in accordance with the provisions of Circular No. 02/2023/TT-NHNN dated 23 April 2023 (°Circular 02”) and Circular No. 06/2024/TT-NHNN dated 18 June 2024 ("Circular 06") of the SBV amending and supplementing a number of articles of Circular 02 providing instructions for credit institutions and foreign bank branches on debt rescheduling and debt category maintaining to assist borrowers in difficulty and documents of the SBV on debt classification and risk provisioning. The restructuring of repayment terms for customers in accordance with Circular 02 and Circular 06 will be implemented Until 31 December 2024.

   Loans are classified by risk level into the following groups: Current, Special mention, Sub-standard, Doubtful and Loss. Loans classified as either Substandard, Doubtfui or Loss are considered bad debts.

   Prov"zslon far crsdh losses

   Loans are classified and provisioned for credit losses at the end of each month. The credit loss provision as at 30 June is recognised in the interim consolidated income statement for the period.

   Specific provision

   The specific provision as at 30 June is calculated by subtracting the discounted value of collateral from the outstanding loan balance multiplied by the specific provision rate based on the loan classification result as at 30 June. The specific provision rate for each debt group according to DeCree 86 is prescribed as follows:

   Group	Category	Specific provision rate
   1	Current	09s
   2	Special mention	596
   3	5ub-standard	20%
   4	Doubtful	50%
   5	Loss	100%

   up to 30 June 202S, the Bank has made 100K of the specific provision for additional provisions for loan balance restructured in accordance with Circular 02.

   General provision

   Following Decree 86, a general provision is made for credit losses that are yet to be identified during the loan classification and specific provisioning process as well as in cases where the credit institutions encounter potential financial difficulties due to the deterioration in loan quality. Accordingly, the Bank is required to make and maintain a general provision at 0.759£ of the total outstanding loan balances which are classified into groups 1 to 4, excluding deposits at domestic credit institutions and foreign bank branches as prescribed by tax and deposits at overseas credit institutions; loans and forward purchase of valuable papers among credit institutions and foreign bank branches in Vietnam; purchases of certificates of deposit or bonds issued locally by other credit institutions and foreign bank branches; and repurchase agreements of Government bonds on the stock market in accordance with the legal regulations on issuance, registratipn, depository listing and trading of government debt instruments in the stock market and other debts arising between credit institutions and foreign bank branches in Vietnam in accordance with the provisions of law.

   2$l

   LOl

   Provision is recorded as an expense on the interim consolidated income statement and used to write-off bad debts. In accordance with Decree 86, the Bank must set up Risk Handling Council to review and approve the use of provisions for handling risks related to Ioans classified as Group 5, or if borrowers are either liquidated or bankrupted legal entities or deceased or missing individual.

   After a minimum period of 5 years from the date of using the reserve to handle risks and after all measures of the Risk Handling Council have been taken to recover the debt but have not been recovered, the debt may be removed from the off-balance sheet according to the decision of the Bank's Annual General Meeting of Shareholders.

   HO CHI MINH CFFY DEVELOPMENT JOINT STOCK COMMERCIAL BANK FORM B05a/T€TD-HN

   2SBis Nguyen Thi Minh Khai, Sai Gon Ward Issued under CirCvlar No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TD THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Classification of off-balance-sheet commitments

   The Bank classifies guarantee, acceptances of payment and irrevocable loan commitments and other credit risk-bearing commitments (collectively referred to as "off-balance-sheet commitments”) into groups as stipulated in Article 09, Article 10, or Article 11 of Circular 31. Accordingly, off-balance-sheet commitments are classified by risk level into the following groups: Current, Special mention, Substandard, Doubtful and Loss.

   The Bank does not make general and specific provisions for off-balance-sheet commitments in accordance with the regulations of Dacree 86.

4. Investments

   Trading securities include debt securlties and equity securities that the Bank has bought and had the intention to sell in the near future to gain benefits from price differences. Trading securities are recognized at cost at the date of transaction and subsequently recorded at cost during the holding period. Interest and cash dividends derived from trading securities are recognized on a cash basis in the interim consolidated income statement.

   These securities are subject to impairment review at the date of the interim consolidated financial statements. Provisions for securities that are stipulated in the scope of Circular 31 (as described in the summary of significant accounting policies for "Provision for credit losses”) are made in accordance with Decree 86. Provisions for impairment of securities that are not stipulated in the scope of Circular 31 are made when their carrying values are higher than their market vaiues determined in accordance with prevailing accounting regulations.

   The difference between the provision made at the end of this accounting perlod and the provision made at the end of the prior accounting period is recognized in the interim consolidated income statement as “Net gain/(loss) from trading securities".

   Investment seczirit/er

   Available-for-sale investment securities

   Available-for-sale securities include debt and equity securities that the Bank holds for investment and available-for-sale purposes, not frequently traded but can be sold when there is a benefit. For equity securities, the Bank is neither the founding shareholder nor the strategic partner of the investees.

   Available-forequity securities arerecognized at cost at the transaction date and subsequently recorded at cost during the holding period.

   Available-for-sale debt securities are initially recognized at par value at the transaction date. Accrued interest before the acquisition date (for debt securities with interest payment in arrears) or interest income received upfront awaiting amortization (for debt securities with interest payment in advance) is recorded in a separate account. Any discount or premium, which is the negative/positive difference between the cost

   and the amount equal to par value plus (+) accrued interest before the acquisition date (if any) or minus (-) TI

   interest received upfront awaiting amortization {if any), is also recorded in a separate account.

   During the term of those securities in subsequent period, these securities are recorded at par value, and the discount/premium (if any) is amortized into the interim consolidated income statement using the straight-line method over the estimate remaining term of securities. The interest received during the securities term is recorded as follows: accumulative interest ‹ncome before the purchasing date is recorded as a decrease from the cost of such securities and the same amount is credited into the accrued interest income; accumulative interest income after the purchasing date is recognised as the Bank's income on an accrual basis. Interest received in advance is recorded aS income from securities investment using the straight-line method over the period of securities investment.

   HO CHI MINH CITY DEVELOPMENT IOINT STOCK COMMERCIAL BAN$t FQRM BO5a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN No Chi Minh City, Vietnam dated 31 December 2014 0f the SBV

   NOTES TO THE INTERIM CONSOLIDATED FINANCIAL SYAYEMENTS(Continued)

   Periodically, available-for-sale securities are subject to impairment review. Provisions for securities that are stipulated in the scope of Circular 31 (as described in the summary of significant accounting policies for "Provision for credit losses”) are made in accordance with Decree 86. Provisions for impairment of securities that are not stipulated in the scope of Circular 31 are made when their carrying values are higher than their market values determined in accordance with prevailing accounting regulations. Provision for impairment is recorded in the interim consolidated income statement as “Net gain/(loss) from investment sgcurities”.

   Held-to-maturity investment securities

   Held-to-maturity investment securities are debt securities that the Bank purchases for investment purposes to gain interest and the Bank has the intention and the capacity to hold the securities until maturity, including special bonds issued by Vietnam Debt and Asset Trading Corporation ("DATC"). Held-to-maturity securities have determinable value and fixed maturity dates. In case of being sold before maturity, they will be reclassified as trading or available-for-sale securities. Held-to-maturity investment securities are recognized similarly to available-for-sale debt securities.

   Periodically, held-to-maturity securities are subject to impairment review. Provisions for securities that are fallen within the scope of Circular 31 (as described in the summary of significant accounting p0licies for "Provision for credit losses") are made in accordance with Decree 86. Provisions for impairment of securities that are not fallen within the scope of Circular 31 are made when their carrying values are higher than their market values determined in accordance with prevailing accounting regulations. Provision for impairment is recorded in the interim consolidated income statement as "Net gain/(loss) from investment securities”.

   Reclassification

   According to Official Letter No. 2601/NHNN-TCKT dated 14 April 2009 by the SBV, reclassification after the transaction date is made only once for each item of investment securities. In special cases or in case a large number of securities have to be reclassified (greater than or equal to 50% of the total value of the portfolio), the Bank will disclose the effect of reclassification on total assets, liabilities, equity, income and expenses of the Bank in the interim consolidated financial statements.

   An associate is a company over which the Bank has significant influence but which is neither a subsidiary nor a joint venture of the Bank. Significant influence is demonstrated by the right to participate in the financial and operating policy decisions of the investee but without control or joint control over those policies.

   The operating results, assets, and liabilities of associates are accounted for in the consolidated interim financial statements using the equity method. Investments in associates are presented in the consolidated interim statement of financial position at cost, adjusted for changes in the Bank's share of the net assets of the associate after the acquisition date. Losses of the associate exceeding the Bank's investment in that associate(including any long-term interests that, in substance, form part of the Bank's net investment in the associate) are not recognized.

   In cases where a subsidiary of the Bank enters into transactions with an associate of the Bank, unrealized gains or losses corresponding to the Bank's interest in the associate are eliminated from the consolidated intgrim financial statements.

   other long-term investments represent the Bank's capital investments in other entities that are heid, recovered, or settled over a period exceeding one year, in which the Bank holds less than 11% of voting rights and is simultaneously a founding shareholder; or a strategic partner; or has certain influence over

   HO CHI MINH CITY OEVELOPMEMT JOINT STOCX COMMERCIAL BANK FORM B05a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

   the formulation and determination of the financial and operational policies of the investee through a written agreement to appoint personnel to the Board of Directors/Executive Board. These investments are initially recognized at cost on the transaction date and are subsequently carried at cost throughout the holding period.

   Provision for impairment of capital contributions and long-term investments

   A provision for impairment of capital contributions and long-term investments is made if the investee incurs losses in accordance with prevailing accounting regulations.

   The impairment provision is recognized as an operating expense in the Bank*s interim consolidated income statement. The provision recognized shall not exCeed the cost. For investments in listed shares or investments for which fair value can be reliably determined, the provision is made based on the market value of the shares (similar to the provision for a decline in value of trading securities).

   Recoqnftfon

   The Bank recognizes investment securities at the date when the Bank performs the contractual terms (transaction-date based policy). Investment securities are initially recognized at cost. After initial recognition, investment securities are recognized under the above accounting policies.

   Dereco9nitfon

   Investment in securities is derecognised when the rights to receive cash flows from the investments end or when the Bank transfers to the buyer the significant risks and rewards associated with the ownership of the investments.

5. Repurchase and re-sale contracts

   Securities sold under agreements to be repurchased at a specific date in the future (repos) are recorded in the interim consolidated financial statements. The corresponding cash received from these agreements is recognized in the interim consolidated statement of financial position as a borrowing and the difference between the sale price and the repurchase price is allocated to the interim consolidated income statement over the agreement validity period using the straight-line method based on the contractual interest rate.

   C‹

   Securities purchased under agreements to be resold at a specific date in the future (reverse repos) are not recognized in the interim consolidated financial statements. The corresponding cash paid under these agreements is recognized in the interim consolidated statement of financial position as a loan and the difference between the purchase price and resale price is amortized into the interim consolidated income statement over the agreement validity period using the straight-line method based on the contractual interest rate.

6. Fixed assets

   Tangible fixed assets

   Tangible fixed assets are stated at cost less accumulated depreciation. The cost of tangible fixed asset comprises all the Bank's purchase price plus any direHly attributable costs of bringing the asset to working conditions for its intended use.

   Costs related to additions and improvements are capitali2ed and expenditures for maintenance and repairs are charged to the interim consolidated income statement when incurred. When assets are sold or disposed, their cost and accumulated depreciation are written off and any net gains or losses resulting from their disposals are recorded in the interim consolidated income statement.

   HO CHI MINH CITY DEVELOPMENT JDINT STOCK COMMERCIAL BANK FORM B05a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ho Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

   Intangible assets

   Intangible assets are stated at cost less accumulated amortization. The cost of an intangible asset comprises all the Bank's expenditures paid to acquire the asset until it is put into use.

   Expenditures for improvements of intangible assets are capitalized. The expenditures related to intangible assets incurred after initial recognition and evaluated with certainty, increasing the economic benefits of the intangibe fixed assets compared to the initial activity level, are capitalized. Other expenditures related to intangible assets incurred aner initial recognition are charged to the interim consolidated income statement. When intangible assets are sold or disposed, their cost and accumulated amortization are written off and any net gains or losses resulting from their disposals are recorded in the interim consolidated income statement.

7. Depreciation and amortization

   Depreciation and amortization of tangible fixed assets and intangible assets are calculated on a straight-line basis over the estimated useful life of each asset as follows:

   Assets	Estimated useful life fYears)
   Buildings and structures	OS - 50
   Machinery and equipment	07 —14
   Motor vehicles	06-10
   Management tools, equipment	03 - 10
   Other tangible assets	04 - 10
   Computer software	03 - 08

   Land use rights are not amortized if they are granted by the Government of Vietnam for an indefinite term. Land use rights with definite term are amortized over the granted term.

8. Construction In progress

   Assets under construction for administrative purposes or for any other purpose are recorded at cost including design costs, construction costs, equipment installation costs and other costs necessary to form the asset in accordance with the Bank's accounting policy. These costs are recorded and monitored until the asset is completed and ready for use and recorded as an increase in cost of fixed assets.

   The depreciation of these assets is applied from the time the asset is ready to use.

9. Prepaid eapenses

   Prepaid expenses include actual expenses that have arisen but are related to the business performance of many accounting periods. Prepaid expenses comprise prepaid office rentals and other prepaid expenses.

   Prepaid office rentals represent the office rental paid in advance and is allocated to the interim consolidated income statement using the straight-line method over the rental period.

   Other prepaid expenses include repair, maintenance costs for assets, costs of toois and supplies issued for consumption, prepaid service charges and other prepaid expenses, which are expected to provide future economic benefits to the Bank. These expenses are capitalized as prepaid expenses and are allocated to the interim consolidated income statement using the straight-line method over the period of three years or less in accordance with prevailing accounting regulations.

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   HO CHI MINH CITY DEVELOPMENY JOINT STOCK COMMERCIAL BANK FORM B05a/TCTD-HN

   25Bis Nguyen Thi Minh Khai, Sai Gon Ward Issued under Circular No. 49/2014/TT-NHNN Ha Chi Minh City, Vietnam dated 31 December 2014 of the SBV

   NOTES TD THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

10. Receivables

    Receivables other than those from credit activities in the Bank*s operation are initially recognized at cost and subsequently recorded at cost. Other receivables are subject to impairment review for provision-making based on the overdue status of the outstanding receivables or based on the expected loss for the following cases: institutional debtors who have fallen into bankruptcy or have been in the process of dissolution; or individual debtors who are missing, escaping, prosecuted, on trial or passed away even though receivables are not overdue. Provision expense incurred is recorded as ”Operating expenses” in the interim consolidated income statement during the period.

    Provision rates for doubtful receivables are applied in accordance with the prevailing accounting regulations.

11. Other provisions

    Other provisions are recognized when the Bank has a present obligation as a result of a past event, and it is probable that the Bank will be required to settle that obligation. Other provisions are measured at the management‘s best estimate of the expenditure required to settle the obligation as at the end of the reporting period.